Published On: Sat, Nov 25th, 2017

91% of Income from Gwadar will Go to China

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Income from Gwadar The Senate has been informed that 91% of income from Gwadar will go to China. Gwadar is integral to China’s Belt and Road Initiative (BRI).  China-Pakistan Economic Corridor (CPEC) is the flagship project of BRI and is being implemented successfully.

Questions are being raised on the long term plan of CPEC and it has been stated that 91% of income from Gwadar will go to China, while 9% income from Gwadar will go to Gwadar Port authority. This is for the next 40 years.

This was revealed by Federal Minister for Ports and Shipping Mir Hasil Bizenjo after senators voiced apprehension over the confidentiality neighboring the CPEC long-term agreement plan. It is observed by many that the agreement is sloping greatly in favor of China.

The minister said that the agreement was based on a build-operate and transfer model spread over 40 years. That means that Pakistan will take over the operation of the port along with the infrastructure to be built on it during the period to enhance the port’s cargo-handling capacity.

Senators’ expresses concerns like the committees formed for CPEC were not well balanced and also business community was involved.  While some defended the plan and said it will greatly benefit Pakistan.

It is often quoted that CPEC will bring economic prosperity for Pakistan and the region. It will develop the infrastructure, energy mix and some other projects. Furthermore, it is envisioned that many employment opportunities will be created.

The project is expected to bring $62 billion investment into Pakistan and with great focus on Gwadar. China will be having major shares in revenues from the Gwadar, which is concerning but in the long run Pakistan should benefit from the Project.

About the Author

- Junaid Ashraf has a Master of Philosophy degree in government and public policy. He has international publications through Taylor & Francis, a leading British publishing body. He regularly write columns for newspapers. His interests include international political economy, geopolitics and good governance. He writes for Asia Times.